So that is another day complete in our bitcoin price trading efforts and – once again – we have had a pretty interesting time during the European session. Anybody who caught this morning’s coverage will know that we were looking for price to breakout and maintain something of a solid run towards the upside – be that sharp or flat, it didn’t really matter to us. So long as things kept moving the right direction, that’s all that was important for this morning’s intraday thesis.
as it turns out, we got pretty much exactly what we were looking for. So, we’re going to incorporate today’s action into a strategy that we can – with any luck – use to draw further profit from the market as and when things mature into the US session this evening.
With that in mind, then, take a quick look at the chart below before we get started so as to get an idea of what is on and where things stand. It is a one-minute candlestick chart and it has our key range overlaid in red.
As the chart shows, the range we are using for the session tonight comes in as defined by support to the downside at 3984 and resistance to the upside at 4020. We are going to use our standard breakout strategy only this evening since our range is pretty accommodative to this sort of approach.
Specifically, if we see the bitcoin price break above resistance, we will enter long towards an immediate upside target of 4055. A stop loss on the trade at 4010 works well from a risk management perspective. Looking the other way, if we see price close below support, we will jump into a short entry towards a downside target of 3945. On this one, a stop loss summary in the region of 4000 flat looks good.
Charts courtesy of Trading View